Drones Could Grow to $11 Billion Industry by 2024

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Love them or hate them, drones are here to stay — at least for
the foreseeable future. A new report detailing the growth of the
drone industry finds that over the next 10 years, the amount of
money spent annually on drones and their accompanying
technologies will likely double worldwide.

An estimated $6.4 billion is currently being spent each year on
developing
drone technology around the world, according to a report
published earlier this month by the Teal Group Corp., an
aerospace and defense market research firm headquartered in
Fairfax, Virginia. That number is expected to nearly double in
future years, bringing the total amount spent on drones for both
military and commercial applications to $11.5 billion annually by
2024.

The growth of the drone market is mostly fueled by military
organizations in the United States and other countries, according
to the report. The United States already uses a wide range of
unmanned aerial vehicle (UAV) systems — ranging from micro UAVs
small enough to fit in the palm of a soldier's hand, to large
UAVs such as the
Air Force's Predator drone, which is used for both
reconnaissance and air attacks.

This latter type of drone, known as a "hunter-killer" UAV, is
where the analysts at Teal Group expect the U.S. military will be
investing most of its drone dollars over the next decade.

The United States has already developed unmanned combat air
vehicles (UCAVs) that could one day replace conventional
warplanes, such as piloted
fighter jets, according to the report. Boeing's X-45 Phantom
Ray, developed for the U.S. Air Force, and Northrop Grumman's
X-47 Pegasus are just two examples of UCAVs that have already
been designed and built for the military. Information on how
these drone projects are progressing is hard to come by, the
report notes, most likely because the U.S. military has deemed
the projects classified.

According to the report,
drones used for nonmilitary purposes make up a relatively
small portion of today's UAV market, with only 11 percent of all
drone technologies currently being developed and produced for
civilian uses. However, the report states that by the end of the
decade, the share of the market devoted to nonmilitary drones is
expected to grow to at least 14 percent of the total market for
drones.

"Our coverage of the civil UAV market continues to grow with each
annual report, mirroring the gradual increase in the civil market
itself," Philip Finnegan, one of the authors of the study and
director of corporate analysis with the Teal Group,
said in a statement.

The report breaks down civilian use of drones into three main
categories:

Government UAVs: In the next decade, the world can expect to
see more drones used for things like border control, law
enforcement and wildlife research.

Hobbyist UAVs: The report finds that the number of
mass-produced drones, ranging in cost from several hundred to
several thousand dollars, will also likely increase in the coming
decade. These drones will be used by hobbyists and certain
professionals, such as real estate agents looking to showcase
homes.

While Teal Group analysts expect growth in all three of these
sectors over the next decade, the group said that the government
is the most likely sector to increase investment in UAV systems
in the years to come. Law enforcement agencies and other civil
government organizations will have to spend more on drones than
will hobbyists, for example, because the types of drones these
organizations use will probably be much more expensive.

The report also says that drones used for governmental purposes
will likely have much easier access to airspace than drones used
for other purposes.